Will US federal spending on Net Interest exceed National Defense spending for the full Fiscal Year 2026?

Historic Crossover: Interest Costs Eclipsing Defense in 2026

For decades, National Defense has been one of the largest discretionary items in the US federal budget. This prediction states that **Net Interest** payments on the national debt will exceed total **National Defense** outlays for the full Fiscal Year 2026 (ending September 30, 2026).

The CBO Forecast

The overwhelming 'Yes' vote aligns with data from the Congressional Budget Office (CBO) and the Treasury. In FY2025, interest costs already surged toward the $1 trillion mark. With interest rates remaining elevated relative to the previous decade and the total debt load continuing to grow, the CBO projects interest costs to surpass defense spending significantly in 2026. This would be a symbolic and fiscal watershed moment, limiting the government's flexibility for other discretionary spending.